patrick.net

A difficult question.
Investing in individual companies is quite risky now. One can't tell which of them will survive, unless of course you invest in like XOM.
I've bought recently some Vanguard Energy Fund VGENX. I understand it may go down another 10-20% for the next half a year, in which case I will simply buy much more.

Obviously oil company profits aren't all that tied to the price of crude. look for example at a long term chart of Exxon.

http://finance.yahoo.com/echarts?s=XOM+Interactive#

The links BAO shared are probably useful. When looking at specific candidates, common sense would suggest: Find companies with long term price charts that show sensitivity to oil price moves in both directions. That is, compare the stock charts to the long term price of crude.

I was thinking that this would be a good time to invest in lower cost producers. The higher cost ones may go under or be bought out.

marcus says

Obviously oil company profits aren't all that tied to the price of crude. look for example at a long term chart of Exxon.

http://finance.yahoo.com/echarts?s=XOM+Interactive#

The links BAO shared are probably useful. When looking at specific candidates, common sense would suggest: Find companies with long term price charts that show sensitivity to oil price moves in both directions. That is, compare the stock charts to the long term price of crude.

I have only a simpleton understanding of oil prices and its effects on stock market. Exxon was the only thing that came to my mind really.

My other thoughts were, who profits from low energy costs, and who will have to bite the bullet once it goes back up...

I think you can find oil companies to invest in whose price is way more sensitive to the price of crude than Exxon. Maybe companies that make equipment for shale for example, but I have no idea at what price shale becomes profitable.

Companies that make all their money from getting crude out of the ground and bringing crude to market (as opposed to refining oil or selling gasoline) are going to be depressed now, and back up when oil goes back up.

IT's actually a pretty decent idea. And the charts are readily available for you to compare the stock charts to crude charts.

Thanks BAO.

FortWayne says

I don't think it hit the bottom yet, but I'm not trying to time the market. Just doing my research, I feel like this oil thing is just like the housing one prior to it.

You got to buy when it's cheap so you can sell when it's expensive right? That's the whole point of stock market.

You know it was just a few short years ago many people wanted to stop people from investing/speculating on Oil. Buy making it if you don't have a place to take delivery then you can't invest in Oil.

Oil has been traded a dozen times over while it was out on the high seas over the last 8 years. That's just nonsense and has absolutely nothing to do with the free markets.

anonymous says

While the public might not feel bad for big oil companies, there is a backlash here that simply cannot be ignored. Lower oil makes alternative energy and renewable energy projects just that much less competitive.

Well what has it brought us to date but $20,000 hybrid shopping carts?

There's plenty of research and advancements made at the expense of ME and my DOLLARS over the last 8 years. But the greedy bastards have kept Oil aloft so they can justify selling $5,000 worth of hardware for $60,000.

It's time alternate energy stands on its own. If I could by a prius for the $9,000 peice of shit that they look like. I would own two.

If I could shingle my house in solar power shingles for as much as it cost to replace fibreglass shingles, I'd go in debt to make sure that happened tomorrow. I mean we got Smart phones that are more powerful than consumer laptop or desktop tower ever produced to date for less than a shopping cart of groceries from cheapest grocery store in town. But we can't seem to get anything with the "Green" stigma without paying more than a 500% mark up. Just because that industry knows their smug condescending ass munches will gladly buy it up. They aren't interested in a volume business. They want boutique industries supported by tax breaks, grants, and people with more disposable income than brains. Then there's those duped into thinking they are saving world by feeding the bulls.